RERA expected to be notified soon in Telangana

Updated | June 25, 2017 12:15 IST

After slowly, all the State governments are gearing up to impose Real Estate Regulatory Act within their respective states. Rajasthan government is ahead of all the State governments and it launched the official website for the developers to register in.

Telangana, Municipal Administration and Urban Development Minister, KTR has indicated for the RERA notification in the State after the delay of two months, which come into effect from 1st May onwards, this year. Till now, only 18 states and 10 union territories have notified it so far.

Post RERA, the real estate sector into a tizzy. Especially, it was hurting the small-time developers to form about 50pc of the industry, who initiated projects using buyers’ money. The properties or constructions which started before the implication of RERA would witness a drop because of fluctuation in property prices after the RERA.

Reported in the past, RERA is introduced to bring transparency in transactions between the developers and buyers. The RERA made it compulsory for the realtors to deposit 70pc of the project fund which collected from buyers in an escrow account. After the completion of the project only, the funds will be released by the regulatory body of escrow funds. Many of the developers pointed out some limitations in RERA which affect the real estate sector and difficult to enforce the act. It’s difficult for those realtors who start initiate projects with the buyers' money only.

Western Constructions, CEO, T Harischandra Prasad stressed that it will be difficult for the small developers because they to put in their money and have to wait until the completion of the project before taking up another, which apparently takes the minimum to start a new project. This is really the worst hit for the small developers.

Telangana Government set up the committee to draft the rules for RERA and these rules have not been made public yet. On this, Municipal Administration Minister, KTR said that RERA is not implied by him, it is Union government’ legislation, which they are only framing rules for it.

The Telangana Minister has confirmed his prime concern is beneficial to home buyers.